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Bank of America, N.A. v. Desert Canyon Homeowners Association

United States District Court, D. Nevada

June 27, 2019

BANK OF AMERICA, N.A., Plaintiff,
v.
DESERT CANYON HOMEOWNERS ASSOCIATION; et al., Defendants. AND ALL RELATED CASES

          ORDER

          MIRANDA M. DU UNITED STATES DISTRICT JUDGE.

         I. SUMMARY

         This case arises from the foreclosure sale of property to satisfy a homeowners' association lien. Before the Court are: (1) Defendant SFR Investments Pool 1, LLC's (“SFR”) status report (“Status Report”) (ECF No. 113) responding to this Court's prior order (ECF No. 111 at 9); and (2) SFR's motion for default judgment (“Default Judgment Motion”) (ECF No. 112). Because the Court agrees with SFR-as stated in the Status Report-that its crossclaims against Bayview Loan Servicing, LLC (“Bayview”) are moot, it will dismiss those claims. As further explained below, the Court will also deny the Default Judgment Motion as moot, in addition to dismissing both SFR's crossclaims against Adrian Goering and Timothy Goering (“Borrowers”), and counterclaim against Counter Defendant Bank of America, N.A. (“BANA”), as moot in light of the Court's prior order declaring that the applicable deed of trust survived the pertinent homeowners' association foreclosure sale (ECF No. 111 at 9).

         II. STATUS REPORT

         As a preliminary matter, the Court agrees with SFR's assessment in its Status Report that its crossclaims against Bayview are moot. (ECF No. 113 at 2.) The Court will therefore dismiss SFR's crossclaims against Bayview as moot.

         III. DEFAULT JUDGMENT MOTION

         SFR asserts the same counterclaim against BANA and crossclaims against Borrowers[1]-seeking a declaration in its first claim for relief that the HOA Sale extinguished the DOT.[2] (ECF No. 37 at 16-17.) The Court previously found that BANA's DOT survived the foreclosure sale and continues to encumber the property.[3] (ECF No. 111 at 9.)

         In the Default Judgment Motion, SFR seeks a “declaration and determination that [Borrowers and], any successors and assigns, have no right, title or interest in the Property[, ]” and “that SFR is the rightful title owner.” (ECF Nos. 112 at 3, 112-10 at 3.) But the Court cannot grant SFR the relief it seeks in its Default Judgment Motion in light of its prior ruling. (ECF No. 111.) BANA indisputably has an interest in the property by virtue of the Court's prior ruling-its DOT continues to encumber the property. (Id. at 9.) The Court will thus exercise its discretion to deny the Default Judgment Motion. In addition, and because, as explained above, SFR cannot obtain the relief it seeks against Borrowers in light of the Court's prior order, the Court will dismiss SFR's crossclaims against Borrowers as moot.

         For the same reason, the Court will also dismiss SFR's counterclaims against BANA as moot to the extent the prior order is unclear as to resolution of SFR's counterclaims. That resolves the remaining issues in this case.

         IV. CONCLUSION

         The Court notes that SFR made several arguments and cited to several cases not discussed above. The Court has reviewed these arguments and cases and determines that they do not warrant discussion as they do not affect the outcome of the issues before the Court.

         It is therefore ordered that SFR's crossclaims against Bayview Loan Servicing, LLC are dismissed as moot.

         It is further ordered that SFR's motion for default judgment (ECF No. 112) is denied as moot.

         It is further ordered that SFR's counterclaim against Bank of ...


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